II.

IMPORT FLOW FOR FULL CONTAINER LOAD (PORT

KLANG)
Shipping Agent /
Forwarding
Agents

Freight Forwarders

2 Approval of
Import
Permit

Documents
preparation
including (if
applicable)
-COO
documenta
tion from
FTA
Countries

Forwarding
Agent

13

FA prepare and
Submit K1
electronically SMK-DNT

To submit discharge list to

Port Operator. 6 hrs prior
vessels arrival

Importer/Bank
Make Duty Payment thru

Received
instruction for
cargo
clearance
- including
Document
preparation (if
applicable)

-Applicatio
n of Import
Permit
- Collecting
shipping
documents
from bank

Electronic
Manual

15 Prepare RFD and

PIAs
9

10

Physical
inspection if
applicable
Grant
Approval in
SMK

16aPay port charges

A: Documents Preparation

of empty
container

Pass the Gate pass

to Haulier

Port Operator
16aVerify shipping
agent release
container

Customs

release by
Customs

Customs receive K1
electronically

Issue gate pass to

FA

Risk assessment via CVI

Customs received printed
K1& supporting documents

of exemption if
12a Verification
relevant

17 Haulier pick up
container from port

Haulier
16cReceived Gate
Pass

& issue EIR

Cargo release at

12b Assessment of goods

12c Physical inspection if

20 Agents on

14

17

Haulier prepare
CDA
Pick up container
out of port

21 Send container to
importer primes or
warehouse

Port Operator

18 release container
19 port gate

necessary

MPC17/10/08

21 Advice on return

haulier on
16cAdvice
container pick up

Advise shipping

PROCESS INVOLVING NSW

SYSTEM

Issue CMO

CMO

16bVerify container

11

Shipping Agent
Received RFD

Submit Manifest to
Customs/ Port Operators

PIAs
Importer

Exchange Bill of Lading

for Delivery Order

13

container

Haulier prepare
Empty back form
and send to depot
Depot Advise
shipping agents
upon receipt of
empty container

Approved / release K1

B: Customs Clearance
& Tech Control

C: Ports &
Terminal
Handling

1
D: Inland
Transportation &
Handling

II b. IMPORT TIMING
A

Documents
Preparation

Customs
Clearance &
Technical
Control

Ports &
Terminal
Handling

Inland
Transportation
& Handling

9 days

1 day

2 days

2 days

1 day

11/2 day

3 days

1-2 daysa

2 daysb

Note:
a

Depending on availability of SMK Dagang Net system

Including inspection by PIAs

Total

Source

2 days

14 days

MALAYSIA by
World Bank

1- 2 days

51/2 61/2 days

MPC/DNT/OTHERS

2 days

8 9 days

2
MPC17/10/08

No

Process Flow

Importer prepares necessary documents, including :

-COO documentation from FTA Countries (if applicable)
-Collecting shipping documents from banks (if applicable)

Document

Process time

Cost

3 Working Days
COO
Shipping
Documents

3 Working Days

Import permit

Pre-arrival

- Apply import permit from PIAs if applicable

2

PIA approve Import Permit (if applicable) (note: 19 PIAs are

electronic, of which 15 are paperless and 3 will be onboard)

Import Permit

Importer instructs forwarding agent to clear cargo (together

with supporting documents such as bill of lading, permit,
invoice & packing list)

Bill of lading
Permit
Invoice
Packing list

1 day (all
documents in
order and for
normal
clearance)

K1

Preparation : 1 hr

FA perform Document preparation if instructed by Importer

4

Forwarding agents submit K1 electronically (CUSDEC)

through SMK-DNT interface.

RM 10 (DNT)
PIAs own
Fees

No cost

3
MPC17/10/08

No

Process Flow

Document

Process
Time

Cost

Forwarding agent obtains delivery order (DO), including

from shipping agent (that is, exchange Bill of Lading for
DO).

Delivery order

20 mins

Collection of DO
charge P.Klang
free
Klang RM30 per
DO
Shah Alam RM50
Subang and
Petaling Jaya
RM80- document
fee
Others - RM 100

Shipping agent sends manifest to port operator and

Customs within 24 hours of arrival of vessel, in
accordance with Section 52, Customs Act. In practice,
they are allowed to submit much earlier

Manifest

Pre-arrival
RM80 per B/L
(RM130 for Freight
Forwarders
Agency Fee)
EDI fee (RM30) per
B/L

Shipping agents submits Discharge list to Port Operator ,

6 hours prior to vessel arrival

Discharge List

Pre-arrival

No cost

Customs computer system automatically processes &

registers K1 and sends response back to forwarding
agent with registration number

K1 form

Response
Time : 5
20 min

K1 : RM 0.60 per set

EDI charges: RM 1.20
per kB (RM 5 per K1)
Forwarding charges :
RM 120 RM 160 per
container

Risk assessment on K1 done by Customs Verification

Initiative (CVI) Unit at Customs Headquarter to identify
high risk consignments.

Electronic :
Manual : 5

Process of doing4
no cost

MPC17/10/08

No

Process Flow

Document

Process Time

Forwarding agent informs OGA of the arrival of container &

that the approval of the import permit has been approved

K1 form

OGA
inspection time
: 30 min

OGA physical inspection done after customs clearance

Cost
Movement
charge
(RM130/200)
RM10 per box
(Labour
charge)

10

If no physical inspection, OGA will grant approval in SMK.

K1form,
PIA Permit

2 - 5 min

No cost

11

Customs receives Form K1 and supporting documents for

Customs clearance.
a) Basic supporting documents : invoice, packing list and
Delivery Order (no D/O in case of EDO).
b) Other supporting documents such as permit, Certificate
of Origin, CJ5/CJ5A depending on transaction type.
(Applicable to parallel transactions only not applicable in
Paperless)

K1 form
Invoice
Packing List
Delivery Order
Permit
COO
CJ5/CJ5A
BG/G Bond

2 5 min

No cost

12a

For those consignments claiming Treasury/LMW exemption,

K1 and supporting documents have to be submitted to
Import Branch, North Port for the verification of exemption.

K1,
Treasury
Exemption
Letter

15 - 30 min
depending on
number of
items

No cost

12b

Assessment of goods by Senior Customs Officer to

determine duties/taxes payable which includes the following
processes :
a) Verification of particulars declared against supporting
documents;
b) Instruction for physical inspection if necessary;
c) Classification/Valuation;
d) Approval/Release.

K1 form
Invoice
Packing List
Delivery Order
Permit
COO
CJ5/CJ5A

5 - 20 min

No cost

MPC17/10/08

No

Process Flow

Document

Process Time

12c

Physical / CVI inspection involves the following processes

:
a) Preparation for inspection such as submitting SSR to
port operator, moving container to inspection bay
and engaging carpenter to open container.
b)
Actual physical /CVI inspection
* CVI if applicable

K1 form
Invoice
Packing List

a) Preparation : 1
2 hour

Forwarding agent pays import duty on behalf of Importer

via :
a) Electronic Fund Transfer (which is only available
during banking hours);
b) Duty Net (24 x 7, through CIMB); or
c) Manual (through cheque or bank draft)

EFT Message :
PAYORD,
CREMUL,
CREADV
Manual: bank
draft or cheque

a) EFT : 20- 60 min

(different from Bank to
Bank)
b) Duty Net : Real time
Basis
c) Manual : 30 min

14

Customs receipts the K1 and Senior Customs officer signs

off the K1 form to authorize release of cargo. (Applicable
for parallel transactions)
If paperless transaction:
a) Auto-release after payment of duty/tax;
b) Printing of Customs Official Receipt (COR)

K1 form
COR

2 - 5 min

15

Forwarding agent prepare Request For Delivery (RFD)

and submit to Shipping agent. Shipping agent will advise
on Container Movement Order (CMO) to indicate where
the empty container is to be returned to. Forwarding agent
send RFD to Haulier.
(Applicable to parallel transactions only not applicable in
electronic)

RFD
CMO

13

MPC17/10/08

b) Actual inspection :
1-2 hour

Cost
EMC charges:
20 : RM 65
40 : RM 100
Labour fee :
RM 10 RM
30

EFT charges
for EFT : RM
8.00 per
transaction

Actual charge:
Rm15 per
transaction

No

Process Flow

Document

Process
Time

Cost

16a

Port Operator verifies that shipping agent has released container

through Delivery Order or Electronic DO (EDO)
Forwarding agent pay port charges to Port Operator.
Supporting document required is port pass / Mykad for biometric
verification

Delivery Order
Electronic DO

1-2 mins
10-15
secs

No cost

16b

Port Operator verifies that the container has been released by

Customs. Verification of release is based on Customs GCS
release or release made in port system by Customs officer
(manual)
Port Operator issues Gatepass/ EIR (Equipment Interchange
Receipt) to Forwarding Agent

Customs GCS
Release

10-15
secs

No cost

FA then advise the haulier/transport company to pick the

container and passes the Gate pass to the haulier.
Haulier then book window hour of collection through port system

Gate-pass/EIR

16 c

Gate-pass/EIR
2 mins
1 hour

No cost

Online
1 min

17

Haulier/Transport company picks the container out of yard

/interchange

Gate-pass/EIR

20-40
mins

No cost

18

Port operator releases container out of port and issues EIR

(Equipment Interchange Receipt) to Haulier/transport company

Gate-pass/EIR

5 mins

No cost

19

Customs and Port operator check documents (K1 form, EIR &
permit) for release at the gate from haulier

Gate-pass/EIR

30-60
secs

No cost

20

Port operator advise shipping agents when container is delivered

to haulier/ transport company

EDI CODECO
or online report

30 60
mins
(hourly)

No cost

MPC17/10/08

No

Process Flow

Document

Process
Time

21

Haulier/Transport company sends container to Importer

premises or warehouse (this can be immediately upon pickup, or Haulier may send the container to their own warehouse
first)
Haulier returns empty container to pre-designated depot
Depot Advise shipping agents upon receipt of empty
container

CDA

24 hrs

MPC17/10/08

Cost

C
Empty Back
Form

24 hrs

Legend (Export and Import Flow):

PIAs - Permit Issuing Authorities

CMO- Container Movement Order
RFD- Request For Delivery
K2 Form- Customs declaration form for export
K1 Form- Customs declaration form for import
DNT- Dagang Net Technologies (e-service provider)
SMK-DNT- Electronic data interchange system used by
Customs for export declaration
CEPT- Common Effective Preferential Tariff
FMM- Federation of Malaysian Manufacturers

9
MPC17/10/08

I. EXPORT FLOW FOR FULL CONTAINER LOAD (PORT KLANG)

Importer &
Bank
1

Shipping Agent/
Non Vessel
Operating
Common Carrier
Freight Forwarder/
Forwarding Agent

Issue
Purchase
Order /

Shipping Agent
5

PIA

a.) Issue of Shipping note &

CMO (if required)

c.) Release containers to

forwarding agent or shippers

Submit freight
quotation and
finalise freight
charges

PIAs
3

Exporter

Approval of
Export Permit
(if applicable)

a.) Release
empty container

-Packing List
-Shipping
Instruction
-Permit

Stuff & seal

container

14

b.) Update
details to port
system &
Shipping agent

15

Exporter

-Invoice

11
Haulier
Forwarding Agent
4

a.) Received
instruction for cargo
clearance

Ship
21
Port Operator
loads container
on to ship

Customs
13

Port Operator

Documents
preparation

Inspection or
endorsement of
permit (if
required)

22
Depot

Advise on
LC (if
required)

16

b.) Pre-advise Port & Depot

Operator

6
9

Received RFD &

CMO
Haulier Prepare CDA

12

Received
shipment/
consignment
details

c.) Apply for Permit (if

applicable)

10

18

Verifies booking
information

Pick up of empty
(shipping depot) & full
container (exporter
warehouse)

b.) Prepare K2

17

Update seal number

to port system

19
20

Received K2 form
- SMK-DNT
K2 passed to PIA
(if applicable)
K2 vetted by Risk
Assessment
System to identify
High Risk Cargo
Non High Risk
Cargo, automatic
approval is given

23 24
MITI /
Chambers
25 Approval of
Preferential
/NonPreferential
COO (if
required)

Receipt of Duty
Payment (if
applicable)
Release of cargo
Update to Port
Operator on K2
release

PROCESS INVOLVING NSW

SYSTEM
A: Documents Preparation

B: Inland Transportation &

Handling

C: Customs
Clearance
& Tech Control

D: Ports &1
Terminal
Handling

No

Process Flow

Document

Importer issues purchase order to exporter. An LC advise is

issued by the bank (for applicable shipments)

Purchase
Order
Letter of
Credit

2 Working Days
(LC Advise)

Invoice
Packing list
Shipping
instruction

1 Day
(Document
Preparation)

Exporter prepares commercial invoice, packing list &

shipping instruction (after the order is confirmed)
*Shipping booking can be done in advance
*Shipping instruction when all details are available

Process Time

Cost

Overall 2 days
2.

Submit freight quotation and finalise freight charges with

shipper.
- Receive and accept booking from shipper.
- Provide shipper with booking confirmation.
*Freight quotation and frieght charges can be done in advance

Freight
Quotation
Shipping
instruction

3.

PIA approves export permit (if applicable)

Export
permit

4.

a.) Exporter books container with shipping agent through

forwarding agent
b.) Prepare K2 Form
c.) Apply for Export Permit from PIA (if applicable)

Export
permit

Overall 2 days

* Export Permit can be done in advance

No

Process Flow

Document

Process Time

5.

a.) Shipping agent sends Container Movement Order (CMO)

to Forwarding Agent,
b.) Booking pre-advise is sent to port operator and depot
operator
c.) Release containers (depot location, size/type and volume)
to forwarding agents and shippers.

CMO

2 hours
(Documentation
subject to office
hours. Operation is
24 hrs)

6.

Forwarding agent prepares Request For Delivery (RFD)

and submits it to haulier/transport company together with
CMO (24 to 48 hours before pick up date for haulier to
plan). Depots release empty container to haulier.

RFD
CMO

24 hours
(Subject to normal
Office hours if other
circumstances, 3
days )

Cost

B
7.

a.) Haulier picks up empty container & delivers it to

exporters premises
b.) Depot updates container number to booking in Port
system and shipping agent.

nil

24 hours
(Subject to normal
Office hours if other
circumstances, 3
days )

8.

Exporter stuffs the container, seals and informs haulier to

pick up the container

nil

1 day

No

Process Flow

9.

Haulier picks up stuffed container and delivers it to port

Haulier prepare Container Dispatch Advice (CDA) Form

Document

Process Time

Cost

24 hrs
CDA Form

10.

Update seal number to port system

nil

Overall under 24
hrs

11.

Port Operator receive shipment/consignment details as

export pre-advise through online or EDI

nil

1 mins

12.

Port operator verifies the container details and accepts

container at gate. The container is stacked in the
container yard based on declared export vessel

Export preadvise details

5 mins

No

Process Flow

Document

13

FA submits electronic K2 form (through SMK-DNT), ( it

takes around 1 hour to prepare a K2 for 10 items, transmit
and receive customs response with registration number)

K2 form

14

K2 is channeled by Customs to PIAs if required

Inspection or endorsement of permit by PIA (if applicable)

15.

Process Time

Cost

1 hr

8 hrs (if
inspection
required)

K2 declaration is electronically processed by Customs after

approval is given by PIA

C
16.

K2 declaration is vetted by Risk Assessment System and

High Risk Cargo will be identified for control procedure
(documentary check, inspection by scanning or physical
inspection)

17.

For non-high risk cargo, automatic approval is given

18.

Payment of duty, where applicable is received

electronically

No

Process Flow

19.

Release is given automatically after full payment of Duty

is received by Customs

20.

K2 release information is transmitted to Port Operator by

Customs

Document

Process Time

Note: Total
time for C 1
day average
Customs (10-15
minutes)
21.

Port operator receive electronic release for release of

container from GCS/SMK or Port system release based
on hard-copy K2 (if, necessary)

GCS Release
K2 Document

Cost

30 mins

D
22.

Shipping agent sends export manifest to Custom (within 7

days after vessel departure) and received by Customs

Manifest

5 days

No

Process Flow

Document

23.

Shipping agent advises shipping & freight charges

to shipper and/or forwarding agents

Freight Invoice

24.

Forwarding agent pays shipping & freight

charges on behalf of exporter & collect B/L to
include Shipper /Forwarding agents

Bill of Lading

Process Time

Cost

D
25.

Exporter applies for Certificate of Origin if

applicable:
I)preferential (e.g. CEPT) from MITI
II)non-preferential from Chamber of Commerce

Certificate of Origin
- Invoice / PL / BL/
K2 required when
applying for CO

* Time taken for processes 22 to 25 are not measured as only internal processes
once ship has departed

Legend (Export and Import Flow):

PIAs - Permit Issuing Authorities

CMO- Container Movement Order
RFD- Request For Delivery
K2 Form- Customs declaration form for export
K1 Form- Customs declaration form for import
DNT- Dagang Net Technologies (e-service provider)
SMK-DNT- Electronic data interchange system used by
Customs for export declaration
CEPT- Common Effective Preferential Tariff
FMM- Federation of Malaysian Manufacturers